How to safely reopen your business?
The widespread loss caused by COVID-19 has had a long-term impact on businesses across industries. At the same time, it also opened up more avenues for business insurance California. Having a financial umbrella over your company can help retrieve claims for loss of business and other liability concerns.
Before opening your business to the general public, make sure to review your existing coverage to know more about controlling losses. Moreover, you shall also need to check if the business insurance policy is fit to cover COVID-19 related expenses. And to understand these factors, let us read through the following explanations on re-opening business amidst a pandemic.
Insurance and Business Interruptions
Business interruption policy can come in handy when re-opening your enterprise. Many operations had shut their doors in the initial phases and followed the lockdown restrictions to avoid infection.
Now, with more companies re-opening their doors, there can be frequent claims for business interruption insurance. Such coverages help compensate for lost revenues, taxes, rent, employee wages, loan payments, and more.
The criteria for a business interruption policy is direct physical damage. You can only seek claim it is so. However, COVID-19 infection cannot physically damage business. However, the infection contaminates physical surfaces, which can spread via employees’ physical contact. A widespread infection, such as the corona, causes all factory operations to be halted until further notice, resulting in business disruption.
These scenarios can be valid for some insurers to release coverages for the client’s business interruption insurance.
Workers’ Compensation Policies
Worker’s Compensation Insurance kicks in if an employee contracts the COVID-19 infection at the workplace. As a result of this, several workers’ compensation programmes may be activated. Now, the payout is only possible if the infection or disease covered is occupational. It implies that COVID-19 might not be covered. However, there are general scenarios that can trigger a workers’ compensation claim, such as:
- If an airline employee gets it from a passenger.
- The employee is a first-line worker and contacted by a patient.
- If the employee contracted the infection while working at a large gathering hosted by their employer.
The word “liability insurance” refers to an insurance plan that covers an insured person from claims arising from injury caused to other people or damage to someone’s property. If after re-opening, your business is negligent about COVID-19 protocols, you may end up paying liability fines. There can be multiple incidents that may hold the business liable.
Directors and officers (D&O) insurance: D&O liability insurance protects an individual from personal losses if they are sued while working as a director/officer of a firm. It may also cover legal fees and other expenses incurred by the organisation as a result of the lawsuit. If your company fails to communicate and respond to the COVID-19 in a timely manner, you will be held accountable to your shareholders. As a result, it is a company’s responsibility to maintain good financial performance in order to keep stakeholders and shareholders trusting.
General liability insurance: General or commercial liability insurance can help the business when it suffers any financial loss. These losses can be from misplaced advertisements, destruction of property, employee injury within the firm, and more. Covid-related injuries are mostly about infection at the workplace, inability to compensate employees, etc. Hence, a business should prepare for policies that help reimburse for negligent behavior that can put others at the risk of COVID-related problems.
The takeaway here is, the best way to re-open a firm, is to keep an eye out for proper business insurance California to handle loss-related expenses.